Читать книгу How To Become A Business Angel - Richard Hargreaves - Страница 25

VCs are notorious for being nothing less than vindictive if projections are not met and further funding is required. That is, of course, not a good moment for a company to go to its investors with cap in hand.

Angels, on the other hand, tend to be more understanding in those circumstances and the terms they then demand are often much less punitive.

Most of these characteristics make angels a very attractive source of capital.

The combination of quick decisions and the ability to bring directly relevant experience to the table is particularly appealing to entrepreneurs. So is the relative simplicity of the investment documentation.

Angels are also good at following on with further money when the business needs it. The only major negative is that it can be difficult to pull a syndicate of angel investors together which is the reason the government launched the Angel CoFund referred to above (and discussed in Chapter 3).

Increasing numbers of entrepreneurs recognise these very positive features of angel investment. And that puts the angel in a strong position when it comes to negotiating investment terms.